Keeping You Informed - Q4 2023

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January 31, 2024

In 2023 Crown’s operating platform demonstrated remarkable resilience and adaptability, as we faced challenges and valuable learning experiences.  In a landscape where some may adopt a “wait-and-see” approach, our team has consistently been proactive, developing creative solutions tailored to the distinctive needs of each asset.  Key achievements for the year include:

  • Securing zoning approvals for over 1 million square feet of residential development, with further progress on an additional million square feet, all within CR IV LP.
  • Investing over $31.9 million in value-add upgrades across our fund properties.
  • Completing ~540,000 sq. ft. of leasing transactions within our fund portfolio.
  • Attaining renewal rates at or above in-place rents for 96% of lease transactions.
  • Advancing decarbonization initiatives for an additional 2 million sq. ft. of assets.

By leveraging our platform's strengths, we've sold $76.9 million of fund properties, achieving an average IRR of 27%. We have also acquired a small bay portfolio shortly before the close of the year.

With a substantial reserve of capital in our value-add fund, CR V LP, we are well-positioned to capitalize on emerging market opportunities. As interest rates and inflation trajectories become clearer, we anticipate a market with more motivated sellers and narrowing bid-ask spreads.  As we step into 2024, our optimism is bolstered by several factors:

  • The GTA remains one of North America's most significant office markets.
  • Organizations are increasingly adopting definitive return-to-office policies, including hybrid models.
  • Labour market conditions are easing, encouraging greater office presence among employees.
  • Our core market exhibits strong economic and demographic diversity, coupled with Canada's significant population growth driven by immigration.

Crown’s commitment to delivering superior returns and enhancing work environments through our unique operating platform remains steadfast.Thank you for your continued trust and partnership.

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